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Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
44
A STUDY ON THE COMPETITIVE ADVANTAGE OF AAVIN OVER ITS
RIVALS IN THE SALEM REGION: AN EMPIRICAL STUDY
DR.R.SUBRAMANIYA BHARATHY*;
MR.R.RAMESH**; MR.S.B.INAYATH AHAMED**
*ASSISTANT PROFESSOR,
PRIMS, PERIYAR UNIVERSITY,
SALEM. TAMILNADU, INDIA.
**PH.D., RESEARCH SCHOLARS,
PRIMS, PERIYAR UNIVERSITY,
SALEM. TAMILNADU, INDIA.
_____________________________________________________________________________________
ABSTRACT
India is the leading producer of milk in the world. It was in the year 1904 when the seed of
cooperation was sown in India with the passage of first Cooperative Act. Since then Cooperative
movement has made rapid strides in all fields of socioeconomic activities. Due to the White
revolution there is a fierce competition among the dairy firms to increase their market share in
India. Dairy Industry is undertaken by farmers to augment their income and it has been the
source of livelihood for the rural masses. In Tamilnadu, Salem is the leading producer of milk
and due to which many firms have started flooding in the market. It’s to be noted that Aavin is
the leader of the market in this region. It’s because of the various attributes Salem consumers
continue to be brand loyal to Aavin. This paper throws light on factors that promote the sales of
Aavin and to highlight the competitive advantage has over its rivals.
KEYWORD: Competitive Advantage, Cooperative Movement, ,White revolution. _____________________________________________________________________________________
INTRODUCTION
Indian agriculture today is characterized by decreasing farm size, increasing number of
operational holdings, higher degree of fragmentation and a declining contribution of agriculture
to Gross Domestic Product now standing at nearly 32%. It is an index of the diversification of
the economic base. The share of agricultural work force in total at the same time is not declining
and that the absolute number of people dependent on agriculture for jobs and income is to a low
absorptive capacity for Labour in industry. This calls for expansion of emerging high demand
sub-sector like livestock and dairying, horticulture, fisheries, poultry and forestry. There is an
Indian proverb that where cattle are properly cared for, civilization advances, land grows richer,
children grow healthier and debt becomes less, signifying the importance of dairying.
The unfavorable land-man ratio and fragmented land holdings combine make it difficult
to support large families on crop income alone. It is not surprising that the small farmer and the
landless are more often victims of money lenders and of natural calamities. Dairying, as
subsidiary source of income, is a real relief to most of these weaker sections of the society. Often
one or two milk animals enable these farmers to generate sufficient additional income to break
the vicious subsistence of agriculture-debt cycle.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
45
RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. It can be defined as a
scientific and systematic search for pertinent information on a specified task.
In research it is the responsibility of the researcher to expose the research design to
evaluate before they are implemented. The researcher has to specify very clearly and precisely
what decisions he selects and why he selects them, so that others can evaluate it. So the adoption
of proper methodology is an essential step in conducting a research study.
RESEARCH DESIGN
Sampling and Sample Size
It refers to the technique or the procedure the researcher adopts in selecting items for the
sample. The sample design should be reliable and appropriate for the study which is to be
conducted.
Sample Size
The sample size should not be too small or too large, if more error will occur or more
time will be consumed. Hence an optimum sample size of 200 was taken.
Sampling Technique
Convenience sampling technique is used here. When population elements are selected for
inclusion in the sample based on the ease of access, it can be called as convenience sampling.
Data Collection Method
Primary and secondary data were collected for the study. Primary data are that, which are
collected fresh and for the first time and thus happens to be original in character. With the help
of questionnaire, the researcher collected the primary data. In this method a questionnaire is
given to the persons concerned with a request to answer the questions and return the
questionnaire.
The secondary data were collected through magazines, journals, websites and company
records.
DATA ANALYSIS AND INTERPRETATIONS
Table-1
Age and brand preference of Aavin milk
(Source: Primary Data)
S.NO. AGE GROUP (IN YEARS) NO. OF RESPONDENTS % OF RESPONDENTS
1. Below 25 50 25
2. 26-35 97 48.5
3. 36-45 32 16
4. Above 45 21 10.5
Total 200 100
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
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From the table, 48.5% of respondents belong to the age group 26-35 years. 25% of
respondents were of below 25 years. 26% of respondent6s belong to the age group 36-45 years.
10.5% of respondents are above 45 years. Thus it can be interpreted that majority of the
respondents are youngsters who are in the age of 26-35.
Table-2
Sex and Brand Preference of Aavin Milk
S.NO. SEX NO. OF RESPONDENTS % OF RESPONDENTS
1. Male 167 83.5
2. Female 33 16.5
Total 200 100
(Source: Primary Data)
From the table it is interpreted that, 83.5% of respondents are male and 16.5% of
respondents are females.
Table-3
Marital Status and Brand Preference of Aavin Milk
(Source: Primary Data)
From the table, it is interpreted that 86% of respondents are married and 24% of
respondents are unmarried.
Table-4
Education and Brand Preference of Aavin Milk [[[[[
S. NO. EDUCATIONAL LEVEL NO. OF
RESPONDENTS
% OF
RESPONDENTS
1. Illiterate 52 26
2. School level education 110 55
3. Collegiate 27 13.5
4. Professional 11 5.5
S. NO. MARITAL- STATUS NO. OF
RESPONDENTS
% OF
RESPONDENTS
1. Married 172 86
2. Unmarried 28 14
Total 200 100
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
47
Total 200 100
(Source: Primary Data)
The table reveals that 55% of respondents have completed school level education. 26 %
of respondents are illiterate. 13.5% of respondents are collegiate and 5.5% of respondents are
professionals.
Table-5
Occupation and Brand Preference of Aavin Milk
(Source: Primary Data)
From the table, it is inferred that 46% of respondents are businessmen, 35.5% are
employees. 14% of respondents are agriculturists and 4.5% of respondents are professionals.
Table-6
Income and Brand Preference of Aavin Milk
S. NO. INCOME PER
MONTH (IN RS.)
NO. OF
RESPONDENTS
% OF
RESPONDENTS
1. Very low Income
(below 3,000/-) 19 9.5
2. Low income
(3,000 – 8,000/-) 28 14
3. Medium income
(8,000 – 10,000/-) 45 22.5
4 High Income
( Above 10,000/-) 108 54
Total 200 100
(Source: Primary Data)
It is revealed from the table that 54%of respondents `earn more than 10,000. 22.5 % of
respondents have income range between 8000 to 10,000. 14% of respondents have income
between 3000 to 8000. 9.5% of respondents have income below Rs 3000.
S. NO. OCCUPATION No. OF
RESPONDENTS
% OF
RESPONDENTS
1. Employees 71 35.5
2. Businessmen 92 46
3. Agriculturalists 28 14
4. Professional 9 4.5
Total 200 100
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
48
Table-7
Size of the Family and Brand Preference of Aavin Milk
S. NO. FAMILY SIZE No. OF
RESPONDENTS
% OF
RESPONDENTS
1. Very Small
(below 3 members) 52 26
2. Small (3-5 members) 128 64
3. Medium (6-8) 12 6
4. Large (Above 8 members) 8 4
Total 200 100
(Source: Primary Data)
From the table, it reveals that 64% of respondents’ family size consists of 3 to 5
members. 4 % of respondents consist of very small family below 3 members. 6% of respondents
consist of 6 to 8 family members. 4% of respondents consist of more than 8 members in their
family. Thus it can be interpreted that majority of the respondents belong to small family, which
highlights the changing lifestyle of the customers-A shift from the joint family to nuclear family
Table-8
Requirement of Milk and Brand Preference of Aavin Milk
REQUIREMENT
OF MILK (IN LITRES) NO. OF RESPONDENTS % OF RESPONDENTS
Below 1 130 65
1-3 47 23.5
4-6 14 7
Above 6 9 4.5
Total 200 100
(Source: Primary Data)
The table, reveals that 65% of respondents consume less than 1 liter of milk per day.23.5
% of respondents consume 1 to 3 liter of milk. 7 % of respondents consume 4 to 6 liters of milk.
4.5% of respondents consume above 6 liters of milk. Thus this finding supports the finding of the
previous table that in a nuclear family consumption of milk is less.
Table-9
Source of Milk
SOURCE NO .OF. RESPONDENTS % OF RESPONDENTS
Private milk 23 11.5
Aavin milk 130 65
Both (Private & Aavin milk) 47 23.5
Total 200 100
(Source: Primary Data)
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
49
23.5% of respondents procure milk from both private & Aavin milk vendor. 65% of
respondents procures milk from Aavin vender. 11.5 % of respondents procure milk from private
dairy milk. This shows that consumers prefer to buy the Aavin milk from the vendor. Thus it can
be interpreted that Aavin brand has got preference from majority of the respondents.
Table-10
The Respondent’s opinion about the reasons for Buying Aavin milk
REASONS NO .OF.
RESPONDENTS % OF RESPONDENTS
Price 140 70
Package 175 77.5
Quality 200 100
Quantity 200 100
Taste 168 84
Availability 130 65
Freshness 40 20
Door delivery 160 80
(Source: Primary Data)
100% of respondents buy aavin milk for the quality and quantity. 84% of respondents for
the taste and 77.5% of respondents for the package. 80 % of respondents for the price. 65% of
respondents for the availability. 20 % of respondents for the freshness. This table helps the
researcher to make a major finding about the factors which makes Aavin the most preferable
brand. The major factor is found to be Quality of the milk and the Quantity package of the same.
However what arouses the curiosity of the researcher is that, the factor of freshness is chosen by
very less number of respondents, which shows that freshness is not considered as a criterion for
deciding the quality of milk. Next factor which are given importance by the respondents are taste
and door delivery. Thus it can be interpreted that the preference for Aavin milk is mainly
because of the quality, its taste, quantity, Package and the convenience in availability.
Table-11
The Respondent’s opinion about the reasons for buying private milk
REASONS NO .OF.
RESPONDENTS
% OF
RESPONDENTS
Price
135
67.5
Availability 120 60
Credit facility 169 84.5
Door delivery 172 86
Location advantage 117 58.5
Total 200 100
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
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(Source: Primary Data)
The table reveals that 84.5% of respondents by private milk for the credit facility. 86 %
of respondents buy private milk for the door delivery service. 67.5% of respondents buy private
milk for the milk. 60 % of respondents buy private milk for availability. 58.5% of respondents
for the location advantage.
Table-12
Nature of Buying Aavin Milk
NATURE OF BUYING NO .OF.
RESPONDENTS
% OF
RESPONDENTS
Regular 148 74
Irregular 52 26
Total 200 100
(Source: Primary Data)
74% of respondents are regular buyer of Aavin milk. 26% of respondents are irregular
buyers of Aavin milk. Thus it can be interpreted that most of the consumers buy Aavin milk are
brand loyals.
Table-13
The respondents’ opinion about the price of Aavin milk
FEATURES NO .OF.
RESPONDENTS % OF RESPONDENTS
Highly satisfied 102 51
Satisfied 25 12.5
Neither satisfied nor dissatisfied 30 15
Dissatisfied 37 18.5
Highly dissatisfied 6 3
Total 200 100
(Source: Primary Data)
51% of respondents are highly satisfied the milk. 18.5% of respondents are dissatisfied
about the price of Aavin milk. 15 % of respondents are neither satisfied, not dissatisfied high
price. 12.5% of respondents the satisfied with price of Aavin milk. 3 % of respondents are highly
dissatisfied with price of Aavin milk.Thus it can be interpreted that Aavin products are priced to
the satisfaction of consumers.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
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Table-14
The Respondents’ Opinion about the Package of Aavin Milk
(Source: Primary Data)
49.5% of respondents are satisfied about the package of Aavin milk. 16% of respondents
are highly dissatisfied with the package. 15.5 % of respondents are dissatisfied with package. 13
% of respondents are highly satisfied with the package of Aavin milk. 6 % of respondents are
neither satisfied nor dissatisfied with the package. Thus it can be inferred that that packaging can
be improved as nearly 31.5 % of the respondents are dissatisfied with packaging. This is needed
to retain those customers as there are chances that they may switch to other brands which have
got better packaging.
Table-15
The respondents’ opinion about the quality of Aavin milk
FEATURES NO .OF.
RESPONDENTS
% OF
RESPONDENTS
Highly satisfied 113 56.5
Satisfied 32 16
Neither satisfied nor dissatisfied 12 6
Dissatisfied 23 11.5
Highly dissatisfied 20 10
Total 200 100
(Source: Primary Data)
56.5% of respondents are highly satisfied with the quality of Aavin milk. 16% of
respondents are satisfied. 11.5% of respondents are dissatisfied with the, quality of Aavin milk.
10% of respondents are highly dissatisfied .6% of respondents are neither satisfied nor
FEATURES NO .OF.
RESPONDENTS % OF RESPONDENTS
Highly satisfied 26 13
Satisfied 99 49.5
Neither satisfied nor dissatisfied 12 6
Dissatisfied 31 15.5
Highly dissatisfied 32 16
Total 200 100
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
52
dissatisfied. Thus it can be interpreted that the consumers are satisfied with the quality of Aavin,
which supports the finding that quality is the major factor for consumers to go for Aavin.
Table-16
The Respondents’ Opinion about the Quantity of Aavin Milk
FEATURES NO .OF.
RESPONDENTS % OF RESPONDENTS
Highly satisfied 42 21
Satisfied 48 24
Neither satisfied nor dissatisfied 90 45
Dissatisfied 17 8.5
Highly dissatisfied 3 1.5
Total 200 100
(Source: Primary Data)
45% of respondents are neither satisfied nor dissatisfied with the quantity of Aavin milk.
24 % of respondents are 21% of respondents are highly satisfied about the quantity. . 8.5 % of
respondents are dissatisfied with the quality of Aavin milk. 1.5 % of respondents are highly
dissatisfied with the dissatisfied with quantity of Aavin milk.
Table-17
The respondents’ opinion about the taste of Aavin milk
FEATURES NO .OF.
RESPONDENTS % OF RESPONDENTS
Highly satisfied 38 19
Satisfied 60 30
Neither satisfied nor dissatisfied 20 10
Dissatisfied 40 20
Highly dissatisfied 42 21
Total 200 100
(Source: Primary Data)
30 % of respondents are satisfied about the taste of Aavin milk. 21 % of respondents are
highly dissatisfied with the taste. 20 % of respondents are dissatisfied. 19 % of respondents are
highly satisfied. With the quality of Aavin milk. 10 % of respondents are neither satisfied nor
satisfied.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
53
Table-18
The Respondents’ Opinion about the Availability of Aavin Milk
FEATURES NO .OF.
RESPONDENTS % OF RESPONDENTS
Highly satisfied 60 30
Satisfied 27 13
Neither satisfied nor dissatisfied 17 8.5
Dissatisfied 70 35
Highly dissatisfied 26 13.5
Total 200 100
(Source: Primary Data)
35% of respondents are dissatisfied with the availability of milk. 30 % of respondents are
highly satisfied about the availability of Aavin milk. 13.5% of respondents are highly dissatisfied
with the availability of milk. 13 % of respondents are satisfied with the availability of milk. 8.5
of respondents are neither satisfied nor dissatisfied with the availability of Aavin milk.
Table-19
The Respondents’ Opinion about the Freshness of Aavin Milk
FEATURES NO .OF.
RESPONDENTS % OF RESPONDENTS
Highly satisfied 70 35
Satisfied 34 17
Neither satisfied nor dissatisfied 36 18
Dissatisfied 46 23
Highly dissatisfied 14 7
Total 200 100
(Source: Primary Data)
35% of respondents are highly satisfied about the freshness of Aavin milk. 23 % of
respondents are dissatisfied with the freshness of Aavin milk. 18 % of respondents are neither
satisfied nor satisfied with the freshness of milk.17 % of respondents are satisfied with the
freshness of milk. 7% of respondents are highly dissatisfied about the freshness of Aavin milk.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
54
Table-20
Problems Faced By the Respondents
PROBLEMS NO .OF.
RESPONDENTS
% OF
RESPONDENTS
High price 140 70
Taste and purity is not good in sometimes. 154 78
Fresh milk is not available in sometimes 130 65
Not available in early morning as door
delivery 144 72
Aavin milk is not available in 100 ml, 200
ml etc., 190 85
Not available in sometimes 160 80
(Source: Primary Data)
85% of respondents are complaining that Aavin milk is not available in 100 ml, 200ml
etc. 80 % of respondents say that Aavin milk in not available at times. 78 % of respondents say
that taste and purity is not good sometimes. 72 % of respondents feel that door delivery in the
early morning is not available. 70 % of respondents feel that the price of Aavin milk in high. 65
% of respondents feel that freshness milk is not available sometimes.
Findings
A good majority of the respondents purchasing Aavin milk belonged to below 25 years category,
whereas a meagre percentage of respondents purchasing Aavin milk belonged to above 45 years
category.
o A good majority of the respondents preferring Aavin milk belonged to female category.
o A majority of the respondents purchasing Aavin milk belonged to married category.
o A good majority of the respondents purchasing Aavin milk belonged to school level
education, whereas minority of the respondents purchasing Aavin milk belonged to
professional course category.
o A majority of the respondents preferred to buy Aavin milk belonged to business group
category, whereas a meagre percentage of the respondents purchasing Aavin milk
belonged to professional.
o A good majority of the respondents preferred to buy Aavin milk belonged to high income
(Above Rs 10000/-) category.
o A good majority of the respondents purchasing Aavin milk belonged to small size family.
o A good majority of the respondents preferred to buy milk in the range of 1-3 litres per
day.
o A majority of the respondents are buying Aavin milk.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
55
o A majority of the respondents preferred to buy Aavin milk due to quality and quantity.
o A good majority of the respondents are buying private milk due to door delivery system.
o A good majority of the respondents agree that they are buying Aavin milk regularly.
o A majority of the respondents are dissatisfied with the price of Aavin milk.
o A good majority of the respondents are satisfied with the package of Aavin milk.
o A good majority of the respondents are highly satisfied with the quality of Aavin milk.
o A majority of the respondents are neither satisfied nor dissatisfied with the quantity of
Aavin milk.
o A majority of the respondents are satisfied with the taste of Aavin milk.
o A majority of the respondents are dissatisfied with availability of Aavin milk.
o A majority of the respondents are highly satisfied with freshness of Aavin milk.
o A majority of the respondents are satisfied with the door delivery system of Aavin milk.
o A good majority of the respondents complained that Aavin milk is not available in
100ml and 200ml.
SUGGESTIONS
A permanent sales counter with a coupon system in every urban area may be
implemented.
Sales depot may be increased in every area (urban & rural area).
It is found from the analysis that most of the respondents opined that the Aavin milk is
not available in 100ml, 200ml it is one of the major problems. Hence, due attention may
be given by SDCMPU Ltd to AAVIN milk.
The SDCMPU Ltd has to give wide publicity through effective media like T.V, Cinema,
Newspaper, Journals, etc.,
A few respondents lodged a complaint against the packaging system of Aavin milk .To
protect the health of the consumers, the SDCMPU Ltd may concentrate on a good
packaging system.
The researchers strongly recommended introducing the door delivery system in the urban
area for Aavin milk.
The researchers strongly recommended that the quality of the Aavin milk may be
enhanced.
Advertisements regarding milk and milk products of Aavin should be increased.
The respondents feel that the freshness of milk is not true. Their opinion should be
eliminated (or) justified in the organization.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com
56
It was recommended to follow the dual price system i.e., less or concessional price to the
domestic users and high price to commercial users.
Thickness of the Aavin milk may be improved.
Aavin milk should be available at any time in all areas. (Urban & rural area).
Aavin should increase the number of agent in Salem District.
Conclusion
The Indian dairy industry has made rapid progress since independence. A large number
of milk plants and product factories have been established. These organized dairies have been
successfully engaged in the routine commercial production of various milk products. Now a day
the consumer behavior is a very interesting subject to analysis. Generally the consumer buying
behavior is like a black box. There is a rise in the choosy nature of consumers. Consumers have
helped to upgrade their technologies of dairy firms. The study reveals that while purchasing for
dairy products consumers look for freshness, quality, taste and texture, validity and convenience.
The key challenge lies in making the milk affordable to all with all the necessary characteristics.
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